TOURISM is driving a rise in the number of pubs in the Highlands, bucking a UK-wide trend in the decline of the local.

The Highlands and East Dunbartonshire are two of only six areas of the UK that have seen a rise in the number of pubs since the turn of the century- while other areas have been hit hard by a combination of changing consumer habits, higher alcohol prices and a squeeze on household finances.

According to official figures showing the nationwide scale of the pub's decline, nearly one in five Scottish pubs have shut in the decade since the financial crisis.

And since 2001 the number of hostelries still in operation has dropped from 3595 to 2840 this year - bringer into sharper focus trade concern for the survival of the small pub.

The Campaign for Real Ale (Camra) has bemoaned the decline of the pub having warned they are being hit hard by triple whammy of one of the highest rates of beer duty across Europe, rapidly rising business rates and VAT. It has previously called for the Government to make changes to tax which could benefit puts after Brexit next year.

The Herald:

But according to an Office of National Statistics (ONS) the areas where pub numbers have held up – or even increased – include several popular tourist areas, such as the Highlands of Scotland as many seaside towns like Scarborough, Blackpool and Brighton. In the Highlands there are now 120 hostelries, 15 more than at the turn of the century, while in East Dunbartonshire it has gone up from 25 to 30.

A VisitScotland spokesman said: “It is disappointing to learn that many pubs across the country are closing. It is important that we continue to promote our pub culture in Scotland and its value to the country’s visitor economy, as is evident in East Dunbartonshire and the Highlands.

“Tourism today is all about consumer choice and our latest insights show, without a doubt, the importance of food and drink to the visitor experience. Almost all – 92% - of visitors dine out while on holiday, with 42% enjoying pub food."

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Across the UK, some of the greatest declines have come on the edges of big cities and in the commuter belt.

And it was no different in Scotland wtih East Renfewshire and East Ayrshire, both south of Glasgow, seeing pub numbers decline the most with 40% fewer since 2001, with big dips also felt in North Ayrshire (38%), South Ayrshire (37%), Falkirk (35%), North Lanarkshire (35%) and West Lothian (32%).

It is mainly small, independently owned pubs that have vanished, while bigger pub chains such as JD Wetherspoon are consolidating around larger bars.

Pub decline checker

While the number of small pubs has dropped by almost a third in Scotland from 2,625 in 2001 to 1,805 now, the number of medium and large ones has risen from 965 to 1,040.

Across the UK, while there has been loss of more than nearly 14,000 pubs since the turn of the millennium, there are now 5,000 more people employed.

And turnover has shot up by 26% from £16.86m at the turn of the century to £21.32m now.

“The remaining pubs and bars appear to have soaked up the custom from those pubs that have closed down,” the report said.

The Economies of Ale report indicates that pubs may be hiring more staff due to an increased focus on serving food in addition to drinks, which requires more hands on in the kitchen and in front of house.

But most jobs in the sector are low paid with around 70% of workers in pubs and bars being paid less than the Living Wage Foundation's recommended Living Wage. This is set at £10.55 per hour in London and £9 per hour elsewhere.

UKHospitality’s chief executive Kate Nicholls said: “Looking at this data, it is clear that pubs are facing challenges, but that they are also crucial providers of jobs around the UK.

The Herald: Sales of both food and drink are down in Scottish bars and pubs

“The new report underlines the need for support from Government to ensure that vital businesses are not squeezed further.”

Kate Nicholls, chief executive trade association UKHospitality said: “Looking at this data, it is clear that pubs are facing challenges, but that they are also crucial providers of jobs around the UK.

“The new report underlines the need for support from Government to ensure that vital businesses are not squeezed further.”

Brigid Simmonds, chief executive of the British Beer and Pub Association warned that unless more is done to help alleviate the cost pressures pubs face they will continue to shut and jobs will be lost.

“Pubs face a number of cost pressures, from high taxes in the form of beer duty, VAT and business rates, to wage increases and food inflation. This means they are under increasing financial pressure from every angle, which is driving closures," she said.

“The pub sector is proud of its role as a major UK employer and so the ONS data showing that pubs are employing more people than ever before is welcome news.

"This reflects that many smaller pubs are closing and larger pubs will inevitably employ more people.

“The Chancellor’s decision in the Budget to freeze beer tax and lower business rates for thousands of pubs will make a real difference to the viability of the sector moving forward – particularly the local, community pubs that the ONS data shows are disappearing.

“More still needs to be done though to save those pubs that are most at risk from closure."